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Branstad: Effort to reduce errors saved Iowa $41M

Gov. Terry Branstad says an effort to reduce Medicaid claim errors and fraud has saved the state $41 million in the last fiscal year.

The state has a contract with a Minnesota company to prevent fraudulent charges and mistakes that would overbill the state.

The company, Optum, also works to ensure that the type of care and services offered is the most efficient.

Branstad says over three years the total savings to the state is $86 million. He says that helps the state provide better care for 400,000 Iowans without reducing services or cutting rates paid to providers.

The company is being paid $14 million for a three-year contract. It will continue through fiscal year 2014 under a one-year optional extension of the contract that was based on performance.

Copyright 2013 by The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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